Rent Advantage is a product designed to help you build credit history by reporting your rent payments to Equifax Canada. Making on-time payments has a positive effect on your payment history, which impacts ~35% of your overall credit score. Please note that all payments (including missed payments) are reported to Equifax Canada. To benefit from this product, it’s important to make your rent payments on time!
The types of credit or tradelines you have on your credit report also determine ~10% of your overall score. If you find the type of credit you hold is mainly credit cards or loans, having Rent Advantage on your credit report can help improve your credit variety. Rent Advantage is reported to the credit bureau as an open credit. Open credit is a type of credit that requires a full payment each month. A common example of open credit is your cell phone bill.
Borrowell doesn’t guarantee credit score improvement, which is dependent on a number of factors such as payment history.
A good credit score can help you save money in the long run as it can help qualify you for lower interest rates and better offers on credit cards, mortgages, loans, and more.